In April 2010 former Malaysian prime minister Abdullah Badawi revealed details of a March 2009 agreement between his country and Brunei to resolve their territorial disputes. Brunei effectively agreed to drop its claim to Limbang, an area between western and eastern Brunei that had long been in Malaysian hands. In addition, Malaysia agreed to drop its claim to two oil-rich areas in the South China Sea in favour of Brunei, but Brunei agreed to let Malaysia jointly exploit resources there for 40 years.

A major government cabinet reshuffle occurred in May. In the mandatory five-year rotation, several senior ministers left office, including Pehin Mohammed Zain (religion), Pehin Ahmad Jumat (culture), and 40-year veteran Pehin Dato Abdul Rahman Taib (education), who had promoted the modernization of education. For the first time, a woman was appointed to the cabinet, as the deputy minister for culture, youth and sports.

During the year, the Brunei Methanol Co. (BMC) started exporting methanol in commercial quantity, which marked an important milestone on the country’s road to economic diversification. The first shipment, 10,000 metric tons of methanol, was dispatched to China in May. BMC sent additional shipments to the U.S., South Korea, the Philippines, and Taiwan.

The five-year marriage of Sultan Haji Hassanal Bolkiah to his third wife, Azrinaz Mazhar Hakim, a former TV3 reporter from Malaysia and the mother of two of his children, ended in divorce in June. The sultan revoked all of her royal titles.